Latest Corporate Transparency Act Case Halted Pending New Rule

The federal government convinced a court to freeze another constitutional challenge to the Corporate Transparency Act pending the anticipated issuance of a new final reporting rule later this year.

The Black Economic Council of Massachusetts Inc., which represents a collection of entrepreneurs and Black-owned businesses in the state, alleged last May that the CTA’s disclosure requirements violated its members’ constitutional rights against unreasonable search and self-incrimination.

The US District Court for the District of Massachusetts on Tuesday granted the US’s request to hold the suit in abeyance until new Treasury Department regulations are finalized.

Congress created the CTA to combat ...